Demand Performance Flat, November Polyester Staple Fiber Prices Fluctuate and Weaken in China

November 27th, according to news from China

According to the commodity market analysis system, the price of polyester staple fiber in China has shown a slight downward fluctuation. As of November 27, the average market price for polyester staple fiber (1.4D*38mm) was 6,296 CNY per ton, a decrease of 0.64% from the beginning of the month.

Despite OPEC+’s latest round of production increases, the crude oil market remains concerned about the long-term risk of supply surplus. Although regional tensions have eased somewhat and U.S. demand has weakened, the ongoing U.S. tariff issue continues to weigh on the global economy and dampen demand expectations, causing international crude oil prices to fluctuate and decline. As of November 26, the settlement price for the January contract of U.S. WTI crude oil futures was $58.65 per barrel, while the settlement price for the February contract of Brent crude oil futures was $62.54 per barrel.

In November, the PTA market in China saw a slight upward trend, with a stalemate and consolidation in the latter half of the month. As of November 26, the spot price of PTA in East China was 4,628 CNY/ton, an increase of 1.86% from the beginning of the month. In terms of supply, the short-term PTA processing fee remains low, and inventory is maintained at a low level. At the end of the month, the 2.5 million ton PTA facility of Honggang Petrochemical restarted, but the 2.2 million ton facility of Yisheng Ningbo was shut down, and some facilities continued to undergo maintenance. Overall, the supply in China continued to decrease, with the industry's operating rate at 73%. Additionally, with the cancellation of BIS, the main suppliers significantly increased their exports, leading to tighter spot liquidity.

Downstream yarn mills are adopting a wait-and-see attitude, showing moderate enthusiasm for purchasing polyester staple fiber, maintaining only essential demand. For the terminal weaving sector, as winter clothing orders have largely been completed, demand is lukewarm. The pace of overseas procurement from China is gradually slowing down, with insufficient momentum for new orders. By the end of the month, the comprehensive operating rate of weaving in the Jiangsu and Zhejiang regions was 66%, and some weaving enterprises still expect to reduce their production load.

Analysts believe that the cost end of the crude oil market will be affected by geopolitical instability, which could increase oil price risks and support higher oil prices. There has been an increase in supply, but supply and demand remain in a tight balance, which is beneficial for PTA. However, as terminal demand enters the off-season, there is insufficient momentum for price increases. Additionally, there are many unstable external factors, and commodity trends are in a stalemate. It is expected that the price of polyester staple fiber in China will experience a weak and volatile adjustment in November.